The offering of top strategy consultants has come under fire in recent months, with a survey suggesting that their “one-size-fits-all” approach is leaving many clients frustrated. Manfred Abraham, CEO of Yonder Consulting, explains that effective strategy is less about snazzy PowerPoints and more about delivering tangible change.
A recent survey from mid-market consultancy Emergn found that the world’s three largest strategy consulting firms are little to no help when engaged for corporate transformations. The study found that just over one-in-ten respondents believed McKinsey & Company, Bain & Company and Boston Consulting Group (known collectively as the MBB) were worth hiring at all, while 84% found they were not helpful, and 3% found they were actively harmful.
Manfred Abraham, CEO of rival strategy firm Yonder Consulting, has dealt with the same challenges that businesses come to the MBB with. However, he contends that the approach of a smaller consultancy is different – more personalised, more directional – and this might be where a lot of the MBB’s problems begin.
When asked what the main differences between the largest strategy firms, and other consultancies in the market, he tells Consultancy.uk, “The ‘Big Three’ of strategy consulting, the MBB, have long been the first choice for companies wanting to overhaul their business strategy. And there is a reason why they do – for many businesses they offer certainty and reassurance. However, as we can see from recent survey results the assumption that they are the best is being challenged.”
According to Abraham, while the MBB have size on their side, each having tens of thousands of employees compared to the hundred or so headcount at smaller consultancies, this is as much “a curse” as an advantage. Having more staff can lead to “sluggish movement and a lack of agility can frustrate clients and ultimately be the undoing of a project.”
“Another challenge for bigger consulting firms is the lack of personal attention,” he continues. “Many large consultancies have a structured playbook which they use to solve business challenges. A cookie-cutter approach that looks good in the oven, but can collapse when the door is opened. This is where smaller firms have an edge. While scale may not be on our side, we can be agile and in turn be more imaginative in our approach. This imagination emerges through truly getting under the skin of a business and understanding its unique quirks, what is exciting about it and where its shortcomings are.”
In today’s competitive landscape, this may no longer be enough. A “one-size-fits-all approach to business challenges” is not as helpful as a “customer-driven approach”, which Abraham says “allows firms to develop a strong relationship and firm understanding of a business – allowing delivery of bespoke solutions that truly resonate with each business’ unique challenges”. Looking ahead, he believes “this is what will move the dial in the long-term”.
In the end, Abraham also suggests that this comes down to a matter of culture, which he says is “everything at every level of every company”. Admitting he “may be biased here”, Abraham contends that firms outside of the MBB tend to have “a more holistic view of company culture and approach to work”, as smaller teams “gel better and with that deliver better results”.
He concludes, “A pressure cooker may be a quick way to get certain results, but long periods of high-intensity work damage employee morale – delivering the exact opposite of what is wanted. People work better under supportive and collaborative conditions, it enhances their creative thinking and problem-solving. In businesses where the only goal is continuous output and productivity, a lot of creative solutions are overlooked in favour of regimented and traditional thinking. Smaller consultancies give employees greater freedom to step back, converse with and therefore inspire each other – uncovering better solutions for clients.”
Launched in October 2020, Yonder Consulting brings together the expertise of four specialist businesses; the award-winning research and consultancy of Populus, the state-of-the-art data capture of Populus Data Solutions, the brand and business strategy of BrandCap, and the insight-led innovation of Decidedly. The firm’s teams in London, New York, Hong Kong and Singapore work alongside clients as partners. The firm received gold ratings in the e-commerce, innovation and marketing categories of Consultancy.uk’s 2024 rankings of the UK consulting industry.